Home Selling in Kalamazoo>Question Details

Susan Ferrit…, Other/Just Looking in Kalamazoo, MI

I would like to know if the 6% commission is still standard in todays market.

Asked by Susan Ferriter, Kalamazoo, MI Tue Jan 27, 2009

Help the community by answering this question:

Answers

13
Rockinblu,

You did answer the question better than a number of the Realtors here. A few have broken the law and don't even practice RE in the state of MI.

FYI, none of the Realtors who have responded are from anywhere near Kalamazoo.

Susan, I think you get the idea by now. I am sure some K'zoo Realtors will show their heads shortly. After all, what you really care about is what you will be charged and receive, not what someone in Illinois or Texas charges, right?
Web Reference: http://mioaklandcounty.com
3 votes Thank Flag Link Tue Jan 27, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
You should be a Realtor, "rockinblu!" :-) Apparently some of my colleagues in Texas do not know it is illegal to answer that question, yet you did know that!
3 votes Thank Flag Link Tue Jan 27, 2009
My colleague from Texas hit the nail on the head ... it is not legal for anyone to consider something such as real estate commission, "standard." If you are looking to sell your home, you need to interview those agents that you feel seem qualified and learn more about their marketing program(s) and the fees associated with them. From there, you can make a decision on what best fits your needs. Best of luck to you!
Web Reference: http://www.DoorToDreams.com
3 votes Thank Flag Link Tue Jan 27, 2009
Anti Trust legislation prevents us from speaking in terms of standards. There are no standards. Commissions are negotiable. Levels of service are different as well, so know what you are paying for. Results are what matters. In a tougher market, commissions tend to trend upward as sellers decide to offer more money to get the results they want.
Web Reference: http://mioaklandcounty.com
2 votes Thank Flag Link Tue Jan 27, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
All commissions are negotiable. As others have mentioned, agents publicly discussing commission rates offered to consumers is off limits - both online and offline - see Sherman Antitrust Act. Please consider this in the future...

Rudy
Social Media Guru at Trulia
1 vote Thank Flag Link Tue Jan 27, 2009
Susan,

Real Estate fees fall under the Anti-Trust Laws, thus there is no fixed standard in our industry. Every contract that I have entered into with a seller, on behalf of our broker, included the language that our percentage is negotiable. Although we, as a company have policies regarding our fees to the public, those policies are set in direct relationship to the services provided.

There are various fee structures offered in the real estate industry, like many industries. There will be variables in services offered, therefore, variables in the cost for those services.

As for our fees...they vary anywhere from 3% to 10% and sometimes a flat fee when it involves no marketing or if we are dealing with rents.

If you are considering hiring a real estate professional, I recommend you put the most weight of your decision on the qualifications of the individual rather than the fee they might charge. For instance, if we negotiate better than the average agent, we will get you more money and if we sell your house faster because of our advanced marketing, it's alot of money if it's 90 days sooner and you avoided 3 mortgage payments. My mom always said..."You get what you pay for" (not always true but often is)

Best of Luck to you!
Let us know if we can provide you information that would help you choose the best choices of Realtors in your area.

Kay Pearson
Real Estate One - Max Broock
Clarkston, Michigain
248-860-0366
Web Reference: http://www.KayPearson.com
1 vote Thank Flag Link Tue Jan 27, 2009
In Northern California we are seeing more and more at 6% some as high as 10% from the new developers who were unwilling to cooperate just a few years ago. How times change.
0 votes Thank Flag Link Tue Jan 27, 2009
Wow,
Lot's of discussion on this one :) I'm just a mortgage guy, but allow me to impart my wisdom, or at least give my 2 cents...

As previously stated, there is no "standard" commission, however in my experience 6% is normal. There are realtors who charge less and realtors who charge more but ultimately it comes down to who will do the best job for you and I always go by the old adage ,"You get what you pay for".

In a tough real estate market like we are in right now, some agents are willing to cut their commissions just to keep working, but is that really the type of realtor you want representing you? If it results in your home being on the market for a longer time or a lower selling price then what have you really saved??

Likewise, some realtors may charge a higher commission, but the added services or expertise may result in a quicker sale and/or a higher sales price.

In the days when you could put up a FOR SALE sign in your yard one day and have dueling offers the next day, I don't think it mattered much who listed your home. Today's market is a whole new ballgame and I think you need someone knowledgable working for you

This is not to say expensive is better or that a discount broker is incapable of meeting your needs, however I think you need to first make a list of your top priorities in selling your home, then interview a few realtors to see who is most equipped to meet your individual needs and goals.

A really good realtor CAN make a big difference and a really bad one will leave you feeling frustrated and wanting to pull your hair out.

Do yourself a favor and take price out of the equation, or at least look at it as only part of a much bigger puzzle

Good luck
Tony
0 votes Thank Flag Link Tue Jan 27, 2009
Rockinblu - you are most welcome!

Kay - well said!
0 votes Thank Flag Link Tue Jan 27, 2009
Nice work...This question raised some eyebrows and conversation. We all realize that no agents from the Kalamazoo area have responded. I typically do not answer questions unless they are in my general market area but this one hedged on the anti trust laws and stirred a need for me to respond. I respect many of the Michigan agents and the responses that they included here. I know that none of us expect to be hired by a seller in the Kalamazoo area, yet we care greatly about people receiving accurate information, in hopes they ultimately are able to make the best decisions.

Although, some advise I have seen on these posts is not always accurate, we hope that the consumer is able to distinguish between those that are the professional responses and those that are not.
0 votes Thank Flag Link Tue Jan 27, 2009
Hi Susan,
There is no standard commissions, however an individual broker/office might have a policy to only accept a listing contract with a 5% or 6% commission, or above. While commissions are negotiable, real estate professionals have the right to establish their own fees.

Is a 6% commission fee a normal fee in todays market? Definetly! The expenses and time involvement to properly market and bring in an offer to the seller has trippled. Just make sure you interview few Real Estate Professionals from your immediate area and decide to hire the one that works full time and can show you their recent activity as well as a good marketing plan.

Good Luck!
Anna
Web Reference: http://www.AnnaNIklarz.com
0 votes Thank Flag Link Tue Jan 27, 2009
Susan, Are you thinking of buying or selling? Like the Pros said they are negotiable. There are many ways to buy and sell that don't involve a Realtor however. For example Land Contracts and Lease Options. You can hire someone to help you or learn how to do it yourself. Herb
0 votes Thank Flag Link Tue Jan 27, 2009
6% has been standard for 20 years since I have been in trade. Expenses conduct business as a realtor have increase however your commission rates have not. Buyers agent fees are paid by seller listing agents are usually more negotiable on their fees than buyers agents.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Jan 27, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer